Cash Dollars Abroad - Federal Reserve Bank of New York
... latter independently. Such work has been substantially impeded by lack of data availability, particularly for developing countries. Several exceptions include Mongardini and Mueller (2000) who use data on secondary cash holdings to estimate currency-substitution ratios for the Kyrgyz Republic; Grube ...
... latter independently. Such work has been substantially impeded by lack of data availability, particularly for developing countries. Several exceptions include Mongardini and Mueller (2000) who use data on secondary cash holdings to estimate currency-substitution ratios for the Kyrgyz Republic; Grube ...
international financial crises
... wit and the speed of his mind make him an exciting and formidable presence, Rudi is one of the finest polemicists in the profession. He seems to take as his leitmotif a statement of Keynes "Words ought to be a little wild for they are the assault of thoughts on the unthinking” – and no one could acc ...
... wit and the speed of his mind make him an exciting and formidable presence, Rudi is one of the finest polemicists in the profession. He seems to take as his leitmotif a statement of Keynes "Words ought to be a little wild for they are the assault of thoughts on the unthinking” – and no one could acc ...
The Monetary Policy Transmission Process: What Do We Know
... do can be very important. In 1988, most people at the time judged the rises in interest rates to be short-lived, with few anticipating that interest rates would go as high as they did, or stay high for as long as they did. This may help to explain why monetary policy seemed slow to take hold at that ...
... do can be very important. In 1988, most people at the time judged the rises in interest rates to be short-lived, with few anticipating that interest rates would go as high as they did, or stay high for as long as they did. This may help to explain why monetary policy seemed slow to take hold at that ...
Economic environment
... Treasury Bill discount rate hovering around 4% (Table I.3). Real short- and long-term (364 days) deposit rates were negative or close to zero throughout the entire period. Increased liquidity in the financial system has allowed for the reduction in the spread between lending and borrowing rates, but ...
... Treasury Bill discount rate hovering around 4% (Table I.3). Real short- and long-term (364 days) deposit rates were negative or close to zero throughout the entire period. Increased liquidity in the financial system has allowed for the reduction in the spread between lending and borrowing rates, but ...
A small scale macroeconomic Model for Venezuela
... country risk premium, ϕ , so that risk-adjusted returns from holding assets in different currencies should be equal in expectations. For a given interest rate path, the nominal exchange rate can be solved as log( Qt ) = Et log( Qt +1 ) − it + itf + ϕ t ...
... country risk premium, ϕ , so that risk-adjusted returns from holding assets in different currencies should be equal in expectations. For a given interest rate path, the nominal exchange rate can be solved as log( Qt ) = Et log( Qt +1 ) − it + itf + ϕ t ...
MEDACI-What-could-be-the-indicators-of-monetary-policy
... The first hypothesis is inspired by the implication that invokes if the Monetary Policy actually affects different sectors of the real economy, the correct measurement of the orientation of the Monetary Policy should therefore be useful in predicting real variables. In the case of Algeria we assume ...
... The first hypothesis is inspired by the implication that invokes if the Monetary Policy actually affects different sectors of the real economy, the correct measurement of the orientation of the Monetary Policy should therefore be useful in predicting real variables. In the case of Algeria we assume ...
The Flexible System of Global Models – FSGM
... To address the computational problem to make it feasible to have a model with 24 blocks, the structure of FSGM modules is substantially simplified relative to GIMF and GEM. FSGM modules are semi-structural, with some key elements, like private consumption and investment, having micro-foundations, wi ...
... To address the computational problem to make it feasible to have a model with 24 blocks, the structure of FSGM modules is substantially simplified relative to GIMF and GEM. FSGM modules are semi-structural, with some key elements, like private consumption and investment, having micro-foundations, wi ...
The Global Crisis and the Turkish Economy
... The first aim of this paper is to examine the extent to which and the channels through which the global crisis affected the Turkish economy. Among these channels, we consider trade, capital movements, external and internal financing, and business expectations. For such an assessment, we first need ...
... The first aim of this paper is to examine the extent to which and the channels through which the global crisis affected the Turkish economy. Among these channels, we consider trade, capital movements, external and internal financing, and business expectations. For such an assessment, we first need ...
This PDF is a selection from a published volume from... National Bureau of Economic Research
... in this model. Prior to the crisis, capital inflows rise in proportion to domestic production under constant returns to accumulable factors of production. Investment may or may not rise as a ratio of output. The model also predicts that the total equity value of the banking sector will be decreasing ...
... in this model. Prior to the crisis, capital inflows rise in proportion to domestic production under constant returns to accumulable factors of production. Investment may or may not rise as a ratio of output. The model also predicts that the total equity value of the banking sector will be decreasing ...
Carry Trades, Monetary Policy and Speculative Dynamics
... notional amount of glacier bonds culminated above 30% of Icelandic GDP. Unsurprisingly, such large inflows led to a sharp appreciation in the Krona combined with overheating in the domestic economy. In particular, for reasons discussed below, the exchange rate appreciation did not have important dem ...
... notional amount of glacier bonds culminated above 30% of Icelandic GDP. Unsurprisingly, such large inflows led to a sharp appreciation in the Krona combined with overheating in the domestic economy. In particular, for reasons discussed below, the exchange rate appreciation did not have important dem ...
M o n e t a r y ... Contents 1 August 2000
... other hand, while growth in the March quarter turned out to be a little stronger than we had assumed, it now seems clear that growth slowed very sharply in the June quarter, and may well have been negative. Business confidence has fallen sharply, as indeed has consumer confidence. Changes in labour ...
... other hand, while growth in the March quarter turned out to be a little stronger than we had assumed, it now seems clear that growth slowed very sharply in the June quarter, and may well have been negative. Business confidence has fallen sharply, as indeed has consumer confidence. Changes in labour ...
chap05 open model int trd-11eeufi
... NX does not change if policy affects neither S nor I. Example: trade policy CHAPTER 5 ...
... NX does not change if policy affects neither S nor I. Example: trade policy CHAPTER 5 ...
NBER WORKING PAPER SERIES HOW WELL CAN THE NEW OPEN ECONOMY
... extra term to the uncovered interest rate parity condition (UIP) in the macro model.4 Such a term is motivated by well-documented empirical evidence of strong deviations from UIP,5 and it can be interpreted in a number of different ways: Obstfeld and Rogoff (2002) derive such a term as a currency ri ...
... extra term to the uncovered interest rate parity condition (UIP) in the macro model.4 Such a term is motivated by well-documented empirical evidence of strong deviations from UIP,5 and it can be interpreted in a number of different ways: Obstfeld and Rogoff (2002) derive such a term as a currency ri ...
This PDF is a selection from a published volume from the... Economic Research Volume Title: NBER International Seminar on Macroeconomics 2007
... An intuitive interpretationof (12) is that firms choose prices so as to insure that, on average, they will operate on their flex-price supply curve.If P is set at a level below (10),marketdemand for the firms'goods turns out to be excessively high, and they need to hire laborabove € to meet demand a ...
... An intuitive interpretationof (12) is that firms choose prices so as to insure that, on average, they will operate on their flex-price supply curve.If P is set at a level below (10),marketdemand for the firms'goods turns out to be excessively high, and they need to hire laborabove € to meet demand a ...
Mankiw 6e PowerPoints
... NX does not change if policy affects neither S nor I. Example: trade policy CHAPTER 5 ...
... NX does not change if policy affects neither S nor I. Example: trade policy CHAPTER 5 ...
Costs and Benefits of Dollarization
... source for liquidity and the central bank needs to look for alternative sources to respond to financial emergencies. These solutions include external lines of credit and reserve funds from tax revenues. Paradoxically, therefore, even though full dollarization limits the role of lender of last resort ...
... source for liquidity and the central bank needs to look for alternative sources to respond to financial emergencies. These solutions include external lines of credit and reserve funds from tax revenues. Paradoxically, therefore, even though full dollarization limits the role of lender of last resort ...
Global Imbalances and Equilibrium Adjustment Mechanisms
... the world interest rates. Keynesian economists consider global imbalances as the main cause of the current meltdown and the increase in unemployment (Skidelsky, 2009). Global imbalances are not a new phenomenon. Keynes attributed the great depression of 1928-32, to a global savings glut, whose main ...
... the world interest rates. Keynesian economists consider global imbalances as the main cause of the current meltdown and the increase in unemployment (Skidelsky, 2009). Global imbalances are not a new phenomenon. Keynes attributed the great depression of 1928-32, to a global savings glut, whose main ...
A Long-Term Strategy and a Short
... the international community.3 Mainly responding to political pressure from the United States and the European Union,4 on July 21, 2005, the Chinese government re-adopted a managed float exchange rate regime based on market supply and demand with reference to a basket of currencies. In addition, the ...
... the international community.3 Mainly responding to political pressure from the United States and the European Union,4 on July 21, 2005, the Chinese government re-adopted a managed float exchange rate regime based on market supply and demand with reference to a basket of currencies. In addition, the ...
Tilburg University Theories on the scope for foreign exchange
... 'The exact implications of an operation in foreign currency by the domestic central bank depend on who is the counterparry in the transaction. An earlier version of this paper which was circulated as a Research Memorandum of the Department of Economics, Tilburg University and which is available from ...
... 'The exact implications of an operation in foreign currency by the domestic central bank depend on who is the counterparry in the transaction. An earlier version of this paper which was circulated as a Research Memorandum of the Department of Economics, Tilburg University and which is available from ...
understanding monetary policy series no 24 how central
... In this series, public policy makers, policy analysts, businessmen, politicians, public sector administrators and other professionals, who are keen to learn the basic concepts of monetary policy and some technical aspects of central banking and their applications, would be treated to a menu of key m ...
... In this series, public policy makers, policy analysts, businessmen, politicians, public sector administrators and other professionals, who are keen to learn the basic concepts of monetary policy and some technical aspects of central banking and their applications, would be treated to a menu of key m ...
Charles I. Plosser Robert G. King Working Paper No. 853 1050
... on earlier drafts of this paper. We have also benefited from seminars at the University of Rochester, University of Chicago, and University of Pennsylvania. King's participation in this research is supported by the National Science Foundation under grant SES 80 07513 and Plosser's by the Center for ...
... on earlier drafts of this paper. We have also benefited from seminars at the University of Rochester, University of Chicago, and University of Pennsylvania. King's participation in this research is supported by the National Science Foundation under grant SES 80 07513 and Plosser's by the Center for ...
relative purchasing power parity and the european monetary union
... Frankel (1986, 1990) argues that in order to prove a long term relationship of PPP, a large data set is required to increase the power in the econometric model. He was able to prove a long-term relationship for PPP using data for the exchange rate between the U.S. and the U.K. over the period 1869-1 ...
... Frankel (1986, 1990) argues that in order to prove a long term relationship of PPP, a large data set is required to increase the power in the econometric model. He was able to prove a long-term relationship for PPP using data for the exchange rate between the U.S. and the U.K. over the period 1869-1 ...
Brazil in the 21 Century:
... faced two different constraints. In “good times,” foreign capital was plentiful, and the central bank reaction function did not take into consideration the pressure from the exchange rate (since it was a crawling peg, the pressure would materialize in a loss of foreign reserves to preserve the peg). ...
... faced two different constraints. In “good times,” foreign capital was plentiful, and the central bank reaction function did not take into consideration the pressure from the exchange rate (since it was a crawling peg, the pressure would materialize in a loss of foreign reserves to preserve the peg). ...
Foreign-exchange reserves
Foreign-exchange reserves (also called forex reserves or FX reserves) are assets held by a central bank or other monetary authority, usually in various reserve currencies, mostly the United States dollar, and to a lesser extent the euro, the pound sterling, and the Japanese yen, and used to back its liabilities—e.g., the local currency issued, and the various bank reserves deposited with the central bank by the government or by financial institutions.